- By Aditya Pratap Singh
- Fri, 27 Feb 2026 07:08 PM (IST)
- Source:JND
Gold, Silver ETF New Rule: The Securities and Exchange Board of India (SEBI) has revised the method for valuing gold and silver held by exchange-traded funds (ETFs). This significant move has been introduced as part of Sebi’s revamped framework for the classification of mutual fund schemes.
Earlier on Thursday, the market regulator introduced broadly classified schemes into five categories – equity, debt, hybrid, life cycle, and other schemes.
As part of the overhaul, SEBI said that from April 1, 2026, gold and silver ETFs will have to value physical holdings based on spot prices published by domestic stock exchanges, instead of the current practice, where ETFs follow international benchmarks such as the London Bullion Market Association (LBMA).
According to the regulator, the move would bring greater transparency, uniformity and closer alignment with Indian market conditions.
What Are the New Valuation Rules?
As per the new guidelines, mutual fund schemes will have to determine the value of physical gold and silver based on spot prices published by recognised domestic stock exchanges.
SEBI has said that the process for determining the spot price will follow its prescribed spot polling guidelines. At present, gold and silver ETFs value their holdings using the AM fixing price published by the LBMA.
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However, these international prices are not adopted directly as fund houses make multiple adjustments before finalising the valuation. Metric and currency conversion, transportation costs, customs duties and taxes are some factors part of the adjustment.
The newly introduced framework will come into effect from April 1, 2026.
Why The New Regulation For ETFs
Domestic stock exchanges are regulated entities, and by shifting to exchange-published spot prices, the regulator aims to ensure that valuations more accurately reflect Indian market conditions.
The moves are intended to standardise valuation practices across fund houses, reducing discrepancies arising from varied adjustment methods.
Moreover, according to SEBI, the new rules would bring uniformity to the approach adopted by different schemes and make NAV calculations clearer for investors.
The investors will see a direct impact on the Net Asset Value (NAV) calculation for gold and silver ETFs. The NAVs will be based on domestic exchange spot prices rather than international LBMA benchmarks from the next financial year.